The Fastenal Company, Winona, MN, (Nasdaq: FAST) reported sales for 2014 were up 12.2 percent to $3.7 billion. Profit rose 10.1 percent to $494.2 million.
The number of stores open in 2014 was down 1.9 percent to 2,637. FAST Solutions machines were up 14.9 percent to 46,855 vending machines. And employee count was up 6.6 percent to 18,417.
Sales growth in 2014 was primarily due to higher unit sales for the second consecutive year. Net sales were impacted by slight inflationary price changes in the company's non-fastener products and some price deflation in fastener products, but the net impact was a drag on growth.
Growth in net sales was not meaningfully impacted by the introduction of new products or services, with the exception of FAST Solutions, which has been an expanding component of Fastenal's store-based business. The company said in its earnings release it believes "industrial vending will be an important chapter in the Fastenal story," and that "it has the potential to be transformative to industrial distribution."
Daily sales growth has generally improved since September 2013. This was largely related to changing comparisons to the prior year and to improving sequential patterns. Sales to customers engaged in light and medium duty manufacturing (largely related to consumer products) have improved since late 2013, which the company credited to trends in the PMI Index since that time.
In the fourth-quarter 2014, sales were up 13.8 percent from the prior-year period to $926.3 million. Profit in the fourth quarter rose 19.3 percent to $118.4 million.
